Rolls-Royce scraps plans to work with United Technologies

British jet-engine manufacturer Rolls-Royce has cancelled its plans to work with United Technologies on future development of engines for mid-sized aircraft.

The partnership, announced in October 2011, involved United Technologies’ unit Pratt&Whitney – the company behind the engines of Bombardier’s new aircraft CSeries.

The two firms aimed to study geared turbofan and open rotor technology along with other types of engine configurations. The venture was expected to eventually result in a new line of engines for future narrow-body planes replacing Airbus A320 and Boeing 737.

"The two companies entered into the venture in good faith but there are very few players in this area of the market and UTC and Rolls-Royce felt competition bodies in a number of jurisdictions would have made moving ahead with the partnership complicated," said a source close to the two firms.

When the tie up was announced, analysts believed the move had resolved a spat between the two companies who are the dominant players in the market for aircraft engines along with General Electric.

"Rolls-Royce remains fully committed to this important market segment and will continue to invest in technologies that will enable us to take advantage of opportunities as they arise," the British company said.